Timed Item: 1:00 pm

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Joint Meeting of the Retirement Boards

Meeting Date: 6/28/2016

City of Fresno
Investment Review: JPMorgan U.S. Analyst Strategy
June 2016

Eileen Cohen, Managing Director, Client Portfolio Manager

212-648-1852, eileen.r.cohen@jpmorgan.com

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Agenda

Organizational Update

Investment Philosophy and Process

Portfolio Review

Market Review and Outlook

Appendix

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Deeply resourced, research-driven global manager

Investing with J.P. Morgan Asset Managements Equity Team
Strong belief and commitment to
active management

427 Client-centric, fiduciary

heritage

Equity
professionals Extensive, well-
resourced research
Over USD150 million
annual research budget
Local focus with
Office locations of the collaboration across a
equity professionals global network

Investment performance
Experience and stability
culture
Portfolio Managers and Research average
tenure: 17 years industry / 12 years J.P. Investment teams invest
Morgan alongside clients in their
portfolios
Source: J.P. Morgan Asset Management. All data as of December 31, 2015
Note: J.P. Morgan Asset Managements equity professionals includes portfolio managers, research, client portfolio managers, traders and investment directors
Past performance is not an indication of future performance.

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Equities Assets Under Management

As of March 31, 2016, J.P. Morgan Asset Managements Equity teams manage USD 421bn

Equities U.S. Equities

USD 421bn total assets under management USD 223bn total assets under management

European
Equities Behavioral
$39.0 $24.3
9.3% 10.9%

Global Equities
$76.0 Growth
18.1% Core
$42.6 $92.1
19.1% 41.3%

US Equities
$223.0
53.0%

Emerging
Markets & Asia
Pacific Equities
Value
$83.0
$64.0
19.7%
28.7%

Source: J.P. Morgan Asset Management. Data as of March 31, 2016. Data includes internal Fund of Funds and joint ventures.

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U.S. Equity Large Cap Core portfolio management team

Paul Quinsee
Head of U.S. Equity
Experience
Industry: 31 years
Firm: 24 years

Core Client
Research Team
Portfolio Managers Portfolio Managers

Raffaele Zingone, MD Fundamental

Tom Luddy, MD Lee Spelman, MD
Helge Skibeli, MD
Experience Experience Experience
Director of Global
Industry: 40 yrs Industry: 25 yrs Developed Market Industry: 38 yrs
Firm: 40 yrs Firm: 25 yrs Research Firm: 26 yrs
Industry: 30 yrs
Firm: 26 yrs Josh Feuerman, MD
Susan Bao, MD Steven Lee, MD Experience
Experience Experience David Small, MD
Industry: 25 yrs
Industry: 19 yrs Associate Director of
Industry: 23 yrs Firm: 4 yrs
Firm: 19 yrs U.S. Research
Firm: 12 yrs
Industry: 16 yrs
Firm: 11 yrs Eileen Cohen, MD
Scott Davis, MD
Aryeh Glatter, ED Quantitative Experience
Experience
Experience Industry: 34 yrs
Industry: 19 yrs Danielle Oels, MD
Firm: 10 yrs Industry: 28 yrs Firm: 15 yrs
Firm: 5 yrs Experience
Hamilton Reiner, MD Industry: 18 yrs Janet Yearwood, ED
Firm: 18 yrs
Experience Experience
Tim Snyder, ED
Industry: 29 yrs Industry: 20 yrs
Experience Firm: 2 yrs
Firm: 6 yrs
Industry: 13 yrs
Firm: 13 yrs Wyman Wong, VP
Rick Singh, ED
Experience
Experience
Industry: 10 yrs
Industry: 16 yrs
Firm: 10 yrs
Firm: 3 yrs

As of March 2016

There can be no assurance that the professionals currently employed by J.P. Morgan Asset Management will continue to be employed by J.P. Morgan Asset Management or that the past performance or success of any such
professional serves as an indicator of such professionals future performance or success.

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A team of skilled investors with an average of 19 years of experience

Financials Healthcare

Helge Skibeli Kay Herr David Small

Managing Director Stephen Roseberry Laurence McGrath Dr. Charles Silberstein Daphne Karydas
Managing Director Managing Director Urmas Wompa Steven Wharton Jason Ko Matthew Rand
Associate Director Executive Director Executive Director Executive Director Executive Director
Director of Global Associate Director Managing Managing Director Executive Director Executive Director
of Global Developed Insurance Health Svcs/Medtech Pharma & Biotech Pharma & Biotech
Developed Market of U.S. Research Director Capital Markets REITs REITs
Market Research Industry: 14 yrs. Industry: 19 yrs. Industry: 21 yrs Industry: 21 yrs
Research Industry: 16 yrs. Banks Industry: 20 yrs. Industry: 14 yrs. Industry: 13 yrs.
Industry: 22 yrs. Industry: 33 yrs. Firm: 14 yrs. Firm: <1 yr Firm: 5 yrs. Firm: 1 yr Firm: 1 yr
Industry: 30 yrs. Firm: 11 yrs. Firm: 10 yrs. Firm: 3 yrs
Firm: 26 yrs. Firm: 17 yrs. Firm: 30 yrs.

Consumer Telecom, Media & Technology

Lisa S. Sadioglu Tim Gamache Greg Fowlkes Amit Seth Robert Bowman Nitin Bhambhani, Laura Huang Kris Erickson Ryan Vineyard
Managing Director Executive Managing Director Executive Director Managing Director Managing Director Vice President Executive Director Executive Director
Consumer Staples Director Retail Retail Semis & Technology Software and Services IT Services Media Telecom & Cable
& Homebuilders Consumer Industry: 16 yrs. Industry: 7 yrs. Hardware Industry: 22 yrs. Industry: 11 yrs. Industry: 15 yrs. Industry: 11 yrs.
Industry: 16 yrs. Industry: 11 yrs. Firm: 10 yrs. Firm: <1 yr. Industry: 23 yrs. Firm: 20 yrs. Firm: 11 yrs. Firm: 3 yrs. Firm: 4 yrs.
Firm: 16 yrs. Firm: 11 yrs. Firm: 23 yrs.

Industrials

James Brown Lerone Vincent Nishesh Kumar Hunter Horgan David Maccarrone Leslie Rich David Pasquale Joanna Shatney Mike Leskinen Chris Ceraso
Managing Director Executive Director Managing Director Executive Director Executive Director Managing Director Managing Director Executive Director Executive Director Executive Director
Basic Materials Basic Materials Energy Energy Energy Infrastructure Utilities Industrial Cyclicals Industrial Cyclicals Aerospace & Defense Autos and Transport
Industry: 32 yrs. Industry: 18 yrs. Industry: 19 yrs. Industry: 19 yrs. Industry: 21 yrs. Industry: 23 yrs. Industry: 19 yrs. Industry: 20 yrs. Industry: 15 yrs. Industry: 15 yrs.
Firm: 29 yrs. Firm: 18 yrs. Firm: 18 yrs. Firm: 1 yr. Firm: 6 yrs. Firm: 6 yrs. Firm: 10 yrs. Firm: 2 yrs. Firm: 3 yrs. Firm: 3 yrs.

As of March 2016
Note: Research Analysts Include VPs and above.

There can be no assurance that the professionals currently employed by J.P. Morgan Asset Management will continue to be employed by J.P. Morgan Asset Management or that the past performance or success of any such
professional serves as an indicator of such professionals future performance or success.

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Investment Philosophy and Process

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A simple, but powerful philosophy drives our investment thinking

Stock prices ultimately reflect future earnings

and cash flows

Fair value

Stocks are frequently mispriced by the

Valuation

market relative to their true long-term value

Actual
Stock Price

A consistent investment approach that

exploits mispricings can deliver strong
investment results

Time

This chart is included for illustrative purposes only.

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Our philosophy is implemented through a unique and robust investment process

which has been in place for three decades

INFORMATION SYSTEMATIC PORTFOLIO

ADVANTAGE VALUATION CONSTRUCTION

FUNDAMENTAL RESEARCH DIVIDEND DISCOUNT MODEL STOCK SELECTION FOCUSED

U.S. analyst team of large Proprietary earnings, cash
cap, sector-specialists flow, and growth rate
estimates drive DDM
Global network of analysts
expands our information Stocks ranked into quintiles
sources based on DDMs, from most
attractive to least
The portfolio management
team uses the DDM rankings,
coupled with their own
insights, to drive investment
decisions

DDMs provide an investment

framework to ensure a
consistent approach to
valuation

The manager seeks to achieve the stated objectives. There can be no guarantee the objectives will be met.

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Our analysts long-term forecasts drive our ranking of stocks in each sector
In-depth fundamental research + long-term forecasting framework => Dividend discount ranking
ROBERT BOWMAN
Semiconductors/
Hardware/Network
23 years of experience RANKING

LAM RESEARCH
Current QUINTILE
QUINTILE 11
AVAGO TECHNOLOGIES
Price CHEAP
UNDERVALUED

Normalized earnings
growth
QUINTILE
QUINTILE 22
Short-term
earnings
Current
Earnings
QUINTILE 3
Earnings per share

Valuation
Discipline:
The DDM QUINTILE 4
QUINTILE 4

QUINTILE 5
Years Year Years
QUINTILE 5 NVIDIA
1&2 3 4-8 OVERVALUED
EXPENSIVE CISCO SYSTEMS

In-depth industry framework

Comprehensive competitive analysis
5-year proprietary earning forecasts and normalized estimates

Note: Quintiles are 20% by number of names, not capitalization. The information on this page is for illustrative purposes only and does not necessarily reflect current estimates. The purpose of the slide is to
provide background on the types of analysis performed by JPMIM's research group. As an investment advisor, JPMIM does not give recommendations. The manager may or may not hold the companies
above in existing portfolios.

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Our research rankings have added value for three decades

January 1, 1986 March 31, 2016

Quintile Performance vs. S&P 500 Index

On average, undervalued stocks have outperformed

4.0% and expensive stocks have underperformed.

3.0%

2.0%

1.0%

0.0%
Percent

-1.0%

-2.0%

-3.0%

-4.0%

-5.0%
Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5

Source: J.P. Morgan Asset Management

Chart shows performance of quintiles (as determined by J.P. Morgan Investment Management U.S. Equity research universe) versus the S&P 500 Index, with quintiles rebalanced
monthly. Quintile performance represents the annualized returns of quintiles vs. the annualized return of the S&P 500 over the full time period. Quintile performance results have certain
inherent limitations. Unlike an actual performance record, quintile results do not represent actual trading, liquidity constraints, fee schedules and transaction costs. No representation is
being made that any portfolio will or is likely to achieve profits or losses similar to those shown. Past performance is not indicative of future results.

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Portfolio construction driven by our best research insights

Helge Skibeli,
Global Head of Developed Market Equity Research
Analyst Strategy Portfolio Manager

Construct portfolios
Coordinate
Challenge
Control risk
Super Sectors

Financials Industrials Technology Consumer Healthcare Telecom & Utilities

Communicate
Big Banks & Brokers Basic Materials Systems & Network Consumer Stable Pharma/Biotech Telecommunications
Challenge Financial Services Autos & Transport Hardware Retail Health Services Utilities
Regionals Energy Semiconductors Consumer Cyclicals Med-Tech
Generate ideas Insurance Industrial Cyclicals Software & Media
REITs Services

Insight
Conviction
Long-term valuation signal

High-conviction idea portfolio

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Portfolio Review

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J.P. Morgan U.S. Equity Performance

As of May 31, 2016
Composite Performance One Three Five Since Inception
YTD
(gross of fees) Year Years Years Inception Date

Large Cap Core 130/30 1.48% -2.35% 11.66% 12.50% 10.44% 06/30/04
S&P 500 Index 3.57% 1.72% 11.06% 11.67% 7.46%
Excess -2.09% -4.07% 0.60% 0.83% 2.98%

Large Cap Core 2.57% -0.39% 12.17% 12.76% 11.50% 12/31/85

S&P 500 Index 3.57% 1.72% 11.06% 11.67% 10.35%
Excess -1.00% -2.11% 1.11% 1.09% 1.15%
Analyst Large Cap Core 2.59% -0.05% 11.13% 12.18% 8.72% 12/31/96
S&P 500 Index 3.57% 1.72% 11.06% 11.67% 7.49%
Excess -0.98% -1.77% 0.07% 0.51% 1.23%
Research Enhanced Index (REI) 100 2.90% 1.01% 11.20% 11.99% 10.50% 12/31/88
S&P 500 Index 3.57% 1.72% 11.06% 11.67% 10.03%
Excess -0.67% -0.71% 0.14% 0.32% 0.47%
Disciplined Equity (REI) 250 1.98% -3.78% 10.30% 11.94% 11.03% 12/31/85
S&P 500 Index 3.57% 1.72% 11.06% 11.67% 10.35%
Excess -1.59% -5.50% -0.76% 0.27% 0.68%
Research Managed Volatility 6.96% 8.26% 13.64% N/A 18.06% 09/30/11
Hedged Equity 2.39% -0.90% N/A N/A 7.26% 06/30/13
Opportunistic Equity Long/Short -1.20% 4.55% N/A N/A 14.19% 06/30/13
Large Cap Growth -4.42% -4.15% 11.60% 11.21% 9.57% 07/31/04
Russell 1000 Growth Total 1.76% 1.61% 12.50% 12.11% 8.63%
Excess -6.18% -5.76% -0.90% -0.90% 0.94%

Large Cap Equity Income 5.32% 2.69% 10.67% 12.29% 10.41% 11/30/02
Russell 1000 Value 5.39% -0.06% 9.23% 10.70% 8.40%
Excess -0.07% 2.75% 1.44% 1.59% 2.01% Supplemental to annual performance report
Mid Cap Value 6.08% 0.34% 11.46% 12.93% 16.00% 11/30/88 Past performance is not a guarantee of comparable future results. Total
Russell Midcap Value Index 7.89% -0.31% 10.22% 10.92% 11.83% return assumes the reinvestment of income. Performance results are gross
Excess -1.81% 0.65% 1.24% 2.01% 4.17% of investment management fees. The deduction of an advisory fee reduces
an investors return. Actual account performance will vary depending on
Small Cap Active Core 7.42% 1.67% 11.08% 12.07% 12.76% 09/30/04 individual portfolio security selection and the applicable fee schedule. Fees
Russell 2000 Index 2.28% -5.97% 6.93% 7.86% 7.62% are described in Part II of the Advisors ADV which is available upon
Excess 5.14% 7.64% 4.15% 4.21% 5.14% request . Please see back page for additional disclosure

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City of Fresno - Analyst Performance

As of May 31, 2016
MARKET VALUE
City of Fresno $152,681,950
Analyst Strategy AUM $11,961,291,372

TIME-WEIGHTED TRAILING RATES OF RETURN (%) GROSS OF FEES

QTD One Three Five Since
YTD
2Q16 Year Years Years Inception1
City of Fresno 3.31 2.64 0.01 11.10 12.11 12.22
S&P 500 Index 2.19 3.57 1.72 11.06 11.67 12.01
Excess 1.14 -0.93 -1.70 0.04 0.44 0.21

CALENDAR YEAR RETURN (%) GROSS OF FEES

20111 2012 2013 2014 2015
City of Fresno -2.39 18.75 35.43 13.85 1.18
S&P 500 Index 0.22 16.00 32.39 13.69 1.38
Excess -2.61 2.75 3.05 0.16 -0.21

1Inception date: January 20, 2011 Source: JPMorgan Asset Management

Past performance is not a guarantee of comparable future results. Total return assumes the reinvestment of income. Performance results are gross of investment management fees. The deduction of an advisory fee reduces an investors return.
Note: Dividend and interest income are included in time-weighted rates of return. Rates of return for periods less than one year are not annualized.

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City of Fresno - Analyst Performance

As of June 30, 2015
MARKET VALUE
City of Fresno $150,041,248
Analyst Strategy AUM $13,358,231,229

TIME-WEIGHTED TRAILING RATES OF RETURN (%) GROSS OF FEES

One Three Since
YTD
Year Years Inception1
City of Fresno 2.05 8.94 19.30 14.47
S&P 500 Index 1.23 7.42 17.31 13.72
Excess 0.82 1.52 1.99 0.75

CALENDAR YEAR RETURN (%) GROSS OF FEES

20111 2012 2013 2014
City of Fresno -2.39 18.75 35.43 13.85
S&P 500 Index 0.22 16.00 32.39 13.69
Excess -2.61 2.75 3.05 0.16

1Inception date: January 20, 2011 Source: JPMorgan Asset Management

Past performance is not a guarantee of comparable future results. Total return assumes the reinvestment of income. Performance results are gross of investment management fees. The deduction of an advisory fee reduces an investors return.
Note: Dividend and interest income are included in time-weighted rates of return. Rates of return for periods less than one year are not annualized.

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Our research teams measure of opportunity has risen sharply since late 2015
DDR Valuation Spread
Internet Credit Crisis
35% I. Lehman
Median Valuation Spread Bubble
Accounting Recession
30% Scandals Fears
S&L Crisis
87 Crash Credit Crisis
II. Europe
25%

20%

LT median
15%

10%
'86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

30% 2/10/16

25%
The DDR spread widened from the 49th percentile in
June 2015 to the 95th percentile on Feb. 10, 2016 20% 5/31/16
LT median

6/30/15
15%
2013 2014 2015

Source: J.P. Morgan Asset Management. Data are as of 5/31/16. A Dividend Discount Rate (DDR) is the discount rate that equates the present value of the estimated stream of future dividends to the current market price. The J.P. Morgan DDR is a
bottom-up, sector-neutral and equal-weighted average of DDRs on large-capitalization stocks in the coverage universe as estimated by JPMAM equity research analysts. The DDR spread is calculated by subtracting the average DDR of Quintile 5 stocks
from the average DDR of Quintile 1 stocks and then dividing the difference by the average DDR of all stocks (where stocks are grouped into quintiles based on DDR ranking). For illustrative purposes only.

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U.S. Analyst Performance Attribution: 1Q 2016

As of March 31, 2016 Stock: -1.71
ATTRIBUTION SUMMARY
STOCK ATTRIBUTION Sector: -0.30

Top Contributors Relative Weight (%) 1 Stock Return (%) Impact (%) Comments
Added value as oil prices rebounded; maintain overweight due to strong pipeline and superior
EQT 0.78 29.1 0.14 cost management relative to peers
UNH shares rose as medical costs continued to stabilize; remain positive due to strong Optum
UnitedHealth 1.09 10.0 0.10 platform
Contributed as key regulatory pressures were lifted; maintain overweight due to strong pipeline
Cabot Oil & Gas 0.44 28.5 0.09 and superior cost management relative to peers
CPGX rose after an announced bid from TransCanada; selling out of name due to the
Columbia Pipeline Group 0.13 26.4 0.09 acquisition
Facebook 0.38 9.0 0.08 FB beat on earnings driven by higher ad growth; remains a top pick in Internet space

Top Detractors Relative Weight (%) 1 Stock Return (%) Impact (%) Comments
Shares fell on the heels of a significant negative shock to earnings and the delay of its 10K
Valeant Pharmaceuticals 0.00 -73.5 -0.27 filing; we have exited our position given the many uncertainties surrounding VRX
VRTX shares have underperformed as a result of a perceived miss on reported numbers and
Vertex Pharmaceuticals 0.48 -36.8 -0.22 guidance; continue to like for the CF pipeline and strength of the CF R&D organization
JNJ shares rose in the volatile biopharma market given its relative perceived stability; believe
Johnson & Johnson * -1.66 6.1 -0.21 that temporary earnings growth is not sustainable
Dish Network 0.54 -19.1 -0.21 Declined amid selloff among highly leveraged stocks; continue to like for spectrum holdings
Overweight detracted due to concern over China exposure and the Zika virus; maintain
Royal Caribbean Cruises 0.65 -18.4 -0.14 overweight due to favorable consumer backdrop and RCLs relatively strong brand power
Note: stock attribution reflects relative vs. group. Stock return displayed as per portfolio may or may not reflect the whole period. Where stock is not held in the portfolio, stock return is displayed as per benchmark and may not reflect the whole period

SECTOR ATTRIBUTION
0.4%
0.2% 0.1% 0.1% 0.0% 0.0% 0.0%

0.0% 0.0% -0.1% -0.1% -0.1% -0.1%

-0.2% -0.2% -0.3% -0.3% -0.4%

-1.3%
Energy Media Semi Health Industrial Utilities Basic Software Auto REITs Insurance Financial Regionals Consumer Consumer Retail Telecommu Big Pharm/
& Services Cyclical Materials & & Services Stable Cyclical nications Banks MedTech
Hardware & Services Transpo &
System rtation Brokers

Past performance is not a guarantee of future results.

1Ending weight relative to S&P 500 Index. * Indicates stock underweighted relative to index weight during part or all of the analysis period
Please note the attribution summary is based on the gross excess returns of the account and is shown relative to the S&P 500 Total Return Index. Source: Wilshire.

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U.S. Analyst Performance Attribution: One Year

As of March 31, 2016 Stock: -2.31
ATTRIBUTION SUMMARY
Sector: -0.46
STOCK ATTRIBUTION
Relative Stock Relative Stock
Top Contributors Impact (%) Top Detractors Impact (%)
Weight (%) 1 Return (%) Weight (%) 1 Return (%)

Broadcom 1.83 23.2 0.51 Valeant Pharmaceuticals 0.30 -88.2 -0.61

Lam Research 1.26 19.5 0.30 Dish Network 0.64 -34.0 -0.37
Starbucks 0.23 28.6 0.24 General Electric * -1.53 32.4 -0.37
Walt Disney * -0.92 -4.2 0.23 Twenty First Century Fox 0.90 -16.7 -0.33
Kinder Morgan * -0.28 -55.3 0.19 Johnson & Johnson * -1.16 -0.1 -0.32
Note: stock attribution reflects relative vs. group. Stock return displayed as per portfolio may or may not reflect the whole period. Where stock is not held in the portfolio, stock return is displayed as per benchmark and may not reflect the whole period

SECTOR ATTRIBUTION

0.9%
0.6%
0.4% 0.4% 0.3% 0.2% 0.1%

0.0% 0.0% -0.1% -0.1% -0.2%

-0.4%
-0.4% -0.4% -0.5% -0.5%
-1.1%

-1.9%

Semi Software Media Energy Utilities Financial Consumer REITs Health Insurance Regionals Retail Consumer Big Telecommu Auto Basic Industrial Pharm/
& & Services Cyclical Services Stable Banks nications & Materials Cyclical MedTech
Hardware Services & & Transpo
System Brokers rtation

Past performance is not a guarantee of future results.

1 Average weight relative to S&P 500 Index
* Indicates stock underweighted relative to index weight during part or all of the analysis period
Please note the attribution summary is based on the gross excess returns of the account and is shown relative to the S&P 500 Total Return Index. Source: Wilshire

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U.S. Analyst Performance Attribution: Three Years

As of March 31, 2016 Stock: -0.02
ATTRIBUTION SUMMARY
Sector: -0.01
STOCK ATTRIBUTION (CUMULATIVE)
Relative Stock Relative Stock
Top Contributors Impact (%) Top Detractors Impact (%)
Weight (%) 1 Return (%) Weight (%) 1 Return (%)

Broadcom 1.35 350.7 2.24 Valeant Pharmaceuticals 0.10 -88.2 -0.87

IBM * -0.97 -0.9 0.98 Johnson & Johnson 0.47 30.4 -0.84
Lam Research 1.14 104.4 0.51 Fluor 0.82 -15.8 -0.66
Adobe Systems 0.78 115.6 0.49 McKesson 0.53 2.8 -0.56
Lowes 1.23 109.4 0.46 News Corp New 0.34 -8.7 -0.52
Note: stock attribution reflects relative vs. group. Stock return displayed as per portfolio may or may not reflect the whole period. Where stock is not held in the portfolio, stock return is displayed as per benchmark and may not reflect the whole period

SECTOR ATTRIBUTION (CUMULATIVE)

2.8%
1.7%
0.7% 0.5% 0.5% 0.5% 0.3% 0.3% 0.2% 0.1% 0.1% 0.1%
0.0%
-0.2% -0.5% -0.5%
-1.4%
-2.4%
-2.9%

Semi Software Energy Utilities Health Retail Consumer Telecommu Financial REITs Regionals Insurance Auto Big Basic Media Consumer Pharm/ Industrial
& & Services Cyclical nications Services & Banks Materials Stable MedTech Cyclical
Hardware Services & Transpo &
System rtation Brokers

Past performance is not a guarantee of future results.

1 Average weight relative to S&P 500 Index
* Indicates stock underweighted relative to index weight during part or all of the analysis period
Please note the attribution summary is based on the annualized gross excess returns of the account and is shown relative to the S&P 500 Total Return Index.
Source: Wilshire
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U.S. Analyst: Portfolio Weightings

As of March 31, 2016
TOP FIVE OVERWEIGHTS1 TOP FIVE UNDERWEIGHTS1

Portfolio Benchmark Relative Portfolio Benchmark Relative

Stock Stock
Weight (%) Weight (%) Position (%) Weight (%) Weight (%) Position (%)

Lowes 2.75 0.39 2.36 Exxon Mobil 0.00 1.93 -1.93

Broadcom Ltd 2.18 0.32 1.86 Johnson & Johnson 0.00 1.66 -1.66
Nxp Semiconductors N V 1.38 0.00 1.38 General Electric 0.00 1.65 -1.65
Lam Research 1.44 0.07 1.37 Berkshire Hathaway 0.00 1.48 -1.48
United Technologies 1.67 0.43 1.23 Verizon 0.00 1.23 -1.23

ABSOLUTE VS RELATIVE SECTOR WEIGHTINGS1

10.8% Absolute Relative
9.1%
8.2% 8.4%
7.2% 7.0% 6.8% 7.0% 7.0%

3.9% 4.2% 4.3%

2.8% 3.1% 2.7% 3.1%
2.4%
1.5%
1.1% 0.7% 0.6% 0.6% 0.5% 0.4% 0.3% 0.2% 0.2% 0.1% 0.1% 0.0%

0.0% -0.1% -0.1% -0.3% -0.6% -0.9% -1.0% -1.1%

Consumer Big Financial Regionals Health Autos Software Basic Semis Energy Insurance Media Retail Telecom Utilities Pharma Industrial Consumer REITs
Cyclical Banks Services Services & & Materials & /MedTech Cyclical Stable
& & TransportationServices Hardware
Brokers Systems

1 Reflects relative position to the S&P 500 Index. Source: Wilshire

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U.S. Analyst Portfolio Characteristics: Focus on stock selection

As of March 31, 2016

Fundamental Characteristics Top Ten Holdings

Portfolio Benchmark Security Portfolio%

Microsoft 3.44
P/E ratio1 14.4x 15.0x

Alphabet 2.90
EPS growth2 10.6% 8.3%
Lowes 2.75
Tracking error3 1.94 N/A
Apple 2.47
Turnover4 53% N/A
Broadcom Ltd 2.18
Market capitalization5 $104.1 bn $128.8 bn
Wells Fargo 2.06
Dividend Yield 1.76% 2.17%
Facebook 1.83

Number of Holdings 120 500

UnitedHealth 1.77

Active Share 62% N/A United Technologies 1.67

Amazon 1.63

Total 22.69

The information is taken from a representative account following this strategy. Actual information may differ for each individual account.
1 JPM 12 month forward 2 JPM 4 to 8 year forecast 3 Trailing three years 4 Trailing twelve months 5 Weighted average

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U.S. Analyst: Additional information

As of March 31, 2016

BARRA Tilts PREDICTED TRACKING ERROR 2.33

PREDICTED BETA 1.07

LEVERAGE 0.15

VOLATILITY 0.14
TOP BUYS2 TOP SELLS2
EARNINGS VARIATION 0.13
Kimberly-Clark Procter & Gamble
GROWTH 0.10
Conoco Phillips Apple
VALUE 0.03
Eastman Chemical Exxon Mobil

MOMENTUM -0.02 Coca-Cola Cognizant

EARNINGS YIELD -0.04 General Motors Chevron

SIZE -0.18
% OF PORTFOLIO BY QUINTILE
YIELD -0.20

69% vs 29% Portfolio

60
Benchmark
STRATEGY GUIDELINES1 TYPICAL 44%

40
Sector: +/- 4% +/- 2%
25% 26% 26%
Stock: +/- 4% +/- 2% 19%
20 15% 16%
14%
Expected 6%
9%

Tracking Error: 2% 3% 2% 3% 0% 0%
0
# of Holdings: 90 125 90 125 Q1 Q2 Q3 Q4 Q5 Other

Source: BARRA, J.P. Morgan Asset Management. For illustrative purposes only
The information is taken from a representative account following this strategy. Actual information may differ for each individual account.
1The manager seeks to meet its stated investment guidelines within the approximate range specified. 2Based on net dollar amounts of transactions in 1Q

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Factor volatility was a key driver in 1Q16 market movements

1Q 2016 Factor Returns

6%

4%

2%

0%

-2%

-4%

-6%

-8%

-10%
Dividend Yield Earnings Yield Value Residual Market Cap Leverage Momentum Beta Growth
Volatility

Source: Factset, Standard & Poors, JPMorgan Asset Management, MSCI Barra. Data are as of 3/31/16. Bars represent factor equal-weighted returns for stocks in the S&P 500 Index based on each Barra
factor. Both constituents and factor rankings are constant as of 12/31/15. For illustrative purposes only.

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Market Review and Outlook

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The market feared a coming recession

The yield spread between Barclays U.S. corporate high-yield and Unusually large gap between services & manufacturing
10-year treasury (%) PMI survey level, 50+ = expansion, 3-month average

14% 60 Services

12% 55

10%
50
8%
Manufacturing
45
6%

40
4%

2% 35
'87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16

Corporate Profits U.S. Dollar Index Spot (DXY)

(Billions USD, Log Scale)

1920 100
64
960 95
32
480 Apr. 2016:
90 94.2
16
240
85
8
120
80
60
4

2 75
30

15 1 70
'47 '51 '55 '59 '63 '67 '71 '75 '79 '83 '87 '91 '95 '99 '03 '07 '11 '15 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16

Source: (Top Left) Bloomberg. Data as of 4/4/2016. (Bottom Left) FRED, NDR. Data as of 12/31/2015. (Top Right) Institute for Supply Management. Data as of March 2016. (Bottom
Right) Bloomberg. The U.S. Dollar Index indicates the general international value of the USD by averaging the exchange rates between the USD and major world currencies. Data as
of 4/12/16. For illustrative purposes only.
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The oil price decline is a supply shock, not a demand shock and the energy sector
has driven the majority of spread widening
Crude Oil Demand
(yearly % change in 12-month average)
5%
4%
3%
2%
1%
0%
-1%
-2%
-3%
1997 2000 2003 2006 2009 2012 2015

US high yield corporate bond spreads

Spread to worst over 10-year treasury
20%
Hundreds

Ex- Energy
16%

Energy
12%

8%

4%

0%
1997 2000 2003 2006 2009 2012 2015
Source: (Top) IEA. Bloomberg. Data as of 12/31/2015. For illustrative purposes only. (Bottom) Barclays Research. Data are as of 4/5/2016.

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Recession Check List

Yield Curve Inversion

Change in Employment Trend

Leading Economic Indicator

Corporate Profit Peak

Change in Present Situation Trend1

Real High Powered Money Growth2

High-Yield Spread Over Treasury

Source: Bloomberg, NBER, FRED, Conference Board, NDR, MKM Partners, Deutsche Bank.
1Conference Board Present Situation Index measures consumer sentiments toward the current economic situation. 2Real high powered money growth (%) is calculated based on
subtracting excess reserves of depository institutions from adjusted monetary base divided by consumer price index for all urban consumers. Opinions, estimates, forecasts,
projections and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. There can be
no guarantee they will be met. Shown for illustrative purposes only.

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Corrections are a normal feature of the broader market

S&P 500 intra-year declines vs. calendar year returns
Despite average intra-year drops of 15.7%, annual returns positive in 27 of 36 years GTM U.S. | Page 11

40%
34
31
30
30% 26 27 26 27 26
26
23
20 20
20% 17
15 15 14 YTD
12 13 13
11
9
10% 7
4 4
2 3
1
1
%
-2 0 -1

-7 -5 -5 -6
-10% -6 -7 -7
-7 -8 -8 -8 -8 -8
-10 -9 -9 -10 -10 -11
-11 -11 -12 -12 -12
-13 -13
-20% -17 -17 -16
-18 -17
-20 -19 -19
-23
-25
-30% -27
-30
-34 -34
-40%
-38
-41

-50%
-49

-60%
'80 '85 '90 '95 '00 '05 '10 '15

Source: FactSet, Standard & Poors, J.P. Morgan Asset Management.

Returns are based on price index only and do not include dividends. Intra-year drops refers to the largest market drops from a peak to a trough during the year. For illustrative purposes only. *Returns
shown are calendar year returns from 1980 to 2015, except for 2016 which is YTD. Guide to the Markets U.S. Data are as of March 31, 2016.

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The market is slightly above long-term equilibrium

Valuation 25-year Std. dev.
S&P 500 Index: Forward P/E ratio measure Description Latest avg.* over/under

26x P/E Forward P/E 16.6x 15.8x 0.2

24x CAPE Shillers P/E 25.6 25.7 0.0

Div. Yield Dividend yield 2.3% 2.0% -0.5

22x
P/B Price to book 2.6 2.9 -0.4
20x +1 Std. dev.: 19.0x P/CF Price to cash flow 11.6 11.4 0.1

EY Spread EY minus Baa yield 0.7% -0.5% -0.6 Current:

18x
16.6x
16x
Average: 15.8x
14x

12x
-1 Std. dev.: 12.6x
10x

8x
'90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14

Equity risk premiums vs IG corporates S&P 500 earnings yield vs. Baa bond yield
8%
ERP (IG corporates) March 2016: 4.5% S&P 500 Earnings Yield
6% (Inverse of fwd. P/E): 6.2%
Average

4%

2%

0%

Moodys Baa Yield:

-2% 5.5%
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15
Source: J.P. Morgan Asset Management (Top) Standard & Poors, FactSet, Robert Shiller Data, FRB. Guide to the Markets U.S. Data are as of 3/31/16. (Bottom left) Bloomberg; as of 3/31/16. Equity
risk premium is equal to J.P. Morgan Asset Management Dividend Discount Rate on S&P 500 stocks, less current yield to maturity on IG corporate bonds. A DDR is the discount rate that equates the
present value of the estimated stream of future dividends to the current market price. The J.P. Morgan S&P 500 DDR is a bottom-up, sector-neutral and equal-weighted average of DDRs on
large-capitalization stocks as estimated by J.P. Morgan Asset Management equity research analysts.

A DDR does not represent a stock's expected actual return in any given time period. Please see the disclosure page for index definitions. (Bottom right) S&P, JPMAM. U.S. Data are as of 12/31/15 .
Price to Earnings is price divided by consensus analyst estimates of earnings per share for the next 12 months. Real Earnings Yield is defined as (trailing four quarters of reported earnings/price) - year
over year core CPI inflation. Shown for illustrative purposes only. Past performance does not guarantee future results.

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China + oil + dollar reversal + low expectations should mean upside EPS surprises
Chinas manufacturing/services may have troughed while U.S. dollar may have peaked
Caixin/Markit indices, 3-month moving average Year-over-year % change*, quarterly, USD major currencies index
65 23%
Estimate
Services
60 19%

15%
55 Mar. 2016:
51.9
11%
50
7%
Manufacturing
Mar. 2016:
45
48.7 3%

40 -1%
'06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16

Oil may have troughed earlier this year too JPMorgan S&P 500 EPS estimates and contributions by sector
WTI, nominal prices, USD/barrel
$65 140

6.6 7.4 $119

$60 120 $117 $116
$108
$102 4.0
$55 100 $ 96
7.5
$50
Apr. 8, 2016: 80
$45 $39.75
60
$40
40
$35
20
$30
0
$25 2011 2012 2013 2014 Energy Ex. 2015 Energy Ex. 2016
Jan '15 Apr '15 Jul '15 Oct '15 Jan '16 Apr '16 Energy Energy est.

Source: (Top Charts and Bottom Left) Markit Economics, FactSet, Federal Reserve, J.P. Morgan Asset Management. Currencies in the Trade Weighted U.S. Dollar Major Currencies Index are: British
pound, euro, Swedish kroner, Australian dollar, Canadian dollar, Japanese yen and Swiss franc. 1Q16 dollar is a J.P. Morgan Asset Management estimate. *Year-over-year change is calculated using the
quarterly average for each period. 2016 year-over-year growth estimates assume the USD exchange rate remains stable at its 3/31/2016 value through 4Q 2016. Data are as of
April 10, 2016. (Bottom Right) J.P. Morgan Asset Management. JPM Estimates, IBES. Data as of 3/31/16. For illustrative purposes only.
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Recession fears have dissipated since mid-February but internals of the market are
still defensive
S&P 500 returns in 1Q 2016 Sector returns in 1Q 2016
Cumulative
20% 16%
returns (%)
15% 13%
4%
1.4% 10% 6% 5% 5% 5% 5%
2% 4% 4% 4% 3%
5% 2% 1%
0% 0%
-5% -1% -1% -2%
-2% -3%
-10% -6%
-4% -10%
-15% -13%
-6% -20%

Health Services

Media
Retail

Basic Materials

Auto & Transport

Insurance

Financial Services
Telecom

REITs

Energy

Software

Semis & Hardware

Pharm/MedTech

Regional Banks
Industrial Cyclical

S&P 500
Consumer Cyclical

Banks / Brokers
Utilities

Consumer Stable
-8%

-10%

-12%
1-Jan 15-Jan 29-Jan 12-Feb 26-Feb 11-Mar 25-Mar

Sector returns in first and second halves of 1Q 2016 Alpha in first and second halves of YTD 2016
Jan 1 - Feb 11 Feb 12 - Mar 31 U.S. Analyst Strategy
25% 3%

15% 2.5%
2%
5%
1%
-5%
0%
-15%

-25% -1%
Media
Financial Services
Insurance

Auto & Transport

Health Services
Basic Materials
Regional Banks

REITs

Energy

Retail

Telecom
Semis & Hardware

Pharm/MedTech
Software

S&P 500

Industrial Cyclical
Consumer Cyclical
Banks / Brokers

Consumer Stable

Utilities

-2%
-2.6%

-3%
Jan 1 - Feb 11 Feb 12 - May 31

Source: J.P. Morgan Asset Management, Bloomberg, Wilshire. Data as of 3/31/16. Sector classification is based on JPM sector model. (Bottom Right) Data as of May 31, 2016. Bars illustrate gross-of-fee
returns for the representative account of the U.S. Analyst Strategy. Past performance is not a guarantee of comparable future results. For illustrative purposes only.

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The foundation work of our research platform drives our investment process
Normalized P/E relative to history using our proprietary Dividend Discount Model: Since 1986
Percentile ranking (%)

Cheap Expensive

Consumer Stable 98
Energy 97
Utilities 97
REITs 90
Retail 88
Software & Services 80
Telecommunications 62
Systems & Network Hardware 55
Semiconductors 54
Industrial Cyclical 53
Health Services & Systems 51
Basic Materials 50
Financial Services 48
Consumer Cyclical 41
Autos & Transportation 21
Banks & Brokers 9
Insurance 3
Pharm/MedTech 1
Media 1

0 20 40 60 80 100

Source: JPMorgan Asset Management. Based on JPM sector classification. Data as of April 4, 2016. For illustrative purposes only.

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Healthcare trends have recently been broadly dislocated

Defensive Healthcare has outperformed High-Growth Biotech in 1Q16
Industry DDR spreads are at historic
highs 100
S&P 500 Health Care Index
Biotech valuations have not been this 95

attractive since the late 1990s

Indexed to 100
90

Investors have been unwilling to pay up for 85

biotech companies pipelines NASDAQ Biotech ETF
80
Present stability has been prioritized over
75
future growth
70
1-Jan 15-Jan 29-Jan 12-Feb 26-Feb 11-Mar 25-Mar

DDR Spread in Healthcare Sector

40% Current Valuation Spread
Median Valuation Spread 100th percentile
35%
30%
25%
20%
15%
10%
5%
0%
'86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Source: (Top Right) Bloomberg. Data are as of March 31, 2016. (Bottom) J.P. Morgan Asset Management, as of 3/31/16. A Dividend Discount Rate (DDR) is the discount
rate that equates the present value of the estimated stream of future dividends to the current market price. The J.P. Morgan S&P 500 DDR is a bottom-up, sector-neutral and
equal-weighted average of DDRs on large-capitalization stocks as estimated by J.P. Morgan Asset Management equity research analysts. A DDR does not represent a stock's
expected actual return in any given time period. Please see the disclosure page for index definitions. For illustrative purposes only.
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Despite recent struggles in capital markets activity, valuations in financials remain

attractive
Capital Markets Activity Has Been Depressed in 1Q16 Valuation is recession-like
Last time banks traded at
Double-digit YoY declines in M&A and FICC trading 2.3x this level was shortly after
revenues the European sovereign
2.1x

Price to Tangible Book

debt crisis
Record lows in IPO volumes 1.9x

1.7x

Credit fundamentals are manageable and energy 1.5x

losses are absorbable for large banks 1.3x

1.1x

Valuation provides opportunity; we expect the payout 0.9x

ratio to go up in the 16 CCAR and normalized period

S&P 500 Dividend Payout Ratio by Sector Proforma Price to Tangible Book Value
180%
150% 134% 138% 1.73x

120%
90% 72% 78%
63% 0.99x
0.96x
60% 42% 48% 48% 0.83x
31% 34% 35% 0.69x
30%
0%
Industrials
Financials

Health Care

Staples
Tech

Discretionary

S&P 500

Telecom

Energy
Materials
Utilities

C MS BAC GS WFC

Source: (Top Right) Goldman Sachs Plot Tool, SNL Financial, Goldman Sachs Global Investment Research. Data are as of March 31, 2016. (Bottom Right) J.P. Morgan
Asset Management, SEC. Data are as of March 31, 2016. (Bottom Left) Compustat, FactSet/First Call, BofA Merrill Lynch US Equity & US Quant Strategy, JPMAM. Data
available as of March 31, 2016. For illustrative purposes only. Opinions, estimates, forecasts, projections and statements of financial market trends that are based on current
market conditions constitute our judgment and are subject to change without notice. There can be no guarantee they will be met.
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Appendix

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U.S. Analyst Large Cap Core Composite

Supplemental to annual performance

J.P. Morgan Investment Management Inc. has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS).
J.P. Morgan Investment Management Inc. (JPMIM or the Firm) consists of the assets of institutional clients invested in US managed products including 1) the fixed income and cash assets formerly part of Chase Asset Management and MDSass&Chase
Partners, 2) the New York institutional investment division of JPMorgan Chase Bank, N.A., formerly Morgan Guaranty Trust Company of New York, and 3) the institutional investment assets of JPMorgan Investment Advisors, Inc. (JPMIA), formerly
known as Banc One Investment Advisors Corporation (BOIA), the advisor to institutional assets directly managed by JPMIA or sub-advised by an affiliate institution, and 4) the institutional assets of Bear Stearns Asset Management Inc. The Firm also
includes Separately Managed Accounts over which JPMIM has full and sole discretion. JPMIM is marketed under JPMorgan Asset Management
The composite includes all discretionary accounts, including pooled funds, directly invested according to JPMIMs Analyst Large Cap Core Equity strategy. The strategy invests in a diversified portfolio of U.S. large-cap equities which is managed by a
team of career analysts and overseen by the Research Director. The overall investment objective of the Analyst Large Cap Core Equity strategy is to earn an annualized excess return of approximately 2.0% over the S&P 500 (gross of management
fees) over a full market cycle, which we define as three to five years. The strategys targeted tracking error relative to the benchmark is approximately 3.0%-4.0% per year. The composite was created in January 2001.
Equity futures are occasionally used in accordance with client-authorized account objectives and guidelines in order to equitize large cash contributions and to minimize market impact while purchasing individual equity securities.
.Both gross and net returns reflect the reinvestment of income, deduction of transaction costs, and are net of withholding taxes where applicable. All returns are expressed in U.S. dollars. Gross returns do not reflect the deduction of investment advisory
fees or any other expenses that may be incurred in the management of the account. Net returns are net of model investment advisory fees in effect for the respective time period. Model net returns are calculated by subtracting 1/4th of the highest
applicable fee from the gross composite return on a quarterly basis. As of December 31, 2013, the standard annual fee schedule is as follows: 0.50% on the first $25 million of assets managed; 0.40% on the balance. Actual advisory fees charged and
actual account minimum size may vary by account due to various conditions described in Part IIA of Form ADV.
The firms list of composite descriptions and the policies for valuing portfolios, calculating performance and preparing compliant presentations are available upon request.
The benchmark is the Standard & Poor's 500 Index. The index returns are provided to represent the investment environment existing during the time periods shown. For comparison purposes the index is fully invested, which includes the reinvestment of
income. The returns for the index do not include any transaction costs, management fees or other costs.
The three-year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period.
The internal dispersion of annual returns is measured by the asset-weighted standard deviation of gross account returns included in the composite for the full year. For periods with 5 or fewer accounts included for the entire year, internal dispersion is not
presented (n/a) as it is not considered meaningful.
Past performance is no guarantee of future results. As with any investment vehicle, there is always the potential for gains as well as the possibility of losses.

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City of Fresno U.S. Analyst Large Cap Core Investment Guidelines

INVESTMENT MANAGER AGREEMENT BETWEEN

THE CITY OF FRESNO RETIREMENT SYSTEMS
AND J.P. MORGAN INVESTMENT MANAGEMENT, INC.

Domestic Equity Portfolios - Large Capitalization

The types of assets that may be held in large capitalization, domestic equity accounts are common stock, preferred stock, convertible securities, with the vast majority of
holdings in common stock. In distinction to small capitalization portfolios, which are described below, large capitalization domestic equity portfolios will primarily invest in
stocks with market capitalizations (current market price per share times the number of common shares outstanding) above $10 billion at the time of purchase. Large
capitalization domestic equity managers can invest in mid- (greater than $1.5 billion but less than $10 billion market capitalization stocks at the time of purchase) and large-
capitalization stocks (greater than $10 billion market capitalization stocks at the time of purchase). However, the vast majority of equity holdings will be in large capitalization
issues.
Firms that manage equity portfolios will continually monitor the risk associated with their equity investments. They will be expected to report on the active management bets
they have assumed relative to their respective benchmarks. As a result of this risk/reward analysis, active equity managers will statistically attribute actual performance
variance from their benchmarks in each regular quarterly report. Included in this report will be statistics attributing performance to sector weighting decisions versus the
benchmark and security selection decisions within each sector relative to the benchmark.
American Depository Receipts (ADR's) of foreign companies are authorized investments. ADR's should not exceed 10 percent of the portfolio. ADR securities that are 144A
securities are authorized investments and cannot exceed 5 percent of the portfolio.
Derivative securities may not be held in domestic equity portfolios except to mitigate risk, on a temporary basis, of underlying portfolio holdings. Compliance with the
previously stated derivatives guidelines must be met.
No single security can represent more than 5 percent of the market value of a portfolio at the time of purchase, and no single industry (based on Global Industry Classification
Stand (GICS) can represent more than 15 percent of the market value of the account.

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STRICTLY PRIVATE/CONFIDENTIAL

Biographies
Eileen Cohen is currently Managing Director for JP Morgan Asset Management, a position she has held since 2001. At JP Morgan she is Chair of the North America Proxy
Committee and leads the firms initiatives in corporate governance. Eileen is also a Senior Client Portfolio Manager and a proven expert in investment consulting, portfolio
management and financial communications. Prior to her present position, Ms. Cohen worked for Invesco, formerly Chancellor Capital where she was a partner and held various
roles including Portfolio Manager, Head of Asset Allocation and Head of Client Services. In her earlier professional career, she was a partner at Buck Consulting, an actuarial and
investment consulting firm and held manufacturing and finance positions at International Paper Co. Additionally, Ms. Cohen serves as a mentor in the Executive On Campus
program at Baruch College, where she was received the Alumni Allegiance Award. She is a board member of The National Grid Foundation as well as a member of the advisory
council of SASB (Sustainability Accounting Standards Board). Ms. Cohen has authored numerous articles on investing and is an Adjunct Professor in corporate governance and
ethics at Baruch College. Ms. Cohen completed her BA in economics at Queens College and continued on to Baruch to earn an MBA in finance and economics.

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J.P. Morgan Asset Management

This document is intended solely to report on various investment views held by J.P. Morgan Asset Management. Opinions, estimates, forecasts, and statements of financial market trends that are based on
current market conditions constitute our judgment and are subject to change without notice. We believe the information provided here is reliable but should not be assumed to be accurate or complete. The
views and strategies described may not be suitable for all investors. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be, and
should not be interpreted as, recommendations. Past performance is no guarantee of future results. Please note that investments in foreign markets are subject to special currency, political, and economic
risks.

RISKS ASSOCIATED WITH INVESTING. The price of equity securities may rise or fall because of changes in the broad market or changes in a companys financial condition, sometimes rapidly or
unpredictably. These price movements may result from factors affecting individual companies, sectors or industries selected for the portfolio or the securities market as a whole, such as changes in
economic or political conditions. Equity securities are subject to stock market risk meaning that stock prices in general (or in particular, the prices of the types of securities in which a portfolio invests) may
decline over short or extended periods of time. When the value of a portfolios securities goes down, an investment in a fund decreases in value. There is no guarantee that the use of long and short
positions will succeed in limiting the Fund's exposure to domestic stock market movements, capitalization, sector-swings or other risk factors. Investment in a portfolio involved in long and short selling may
have higher portfolio turnover rates. This will likely result in additional tax consequences. Short selling involves certain risks, including additional costs associated with covering short positions and a
possibility of unlimited loss on certain short sale positions.

There can be no assurance that the professionals currently employed by JPMAM will continue to be employed by JPMAM or that the past performance or success of any such professional serves as an
indicator of such professionals future performance or success.

The deduction of an advisory fee reduces an investors return. Actual account performance will vary on individual portfolio security selection and the applicable fee schedule. Fees are available upon
request.

The following is an example of the effect of compounded advisory fees over a period of time on the value of a clients portfolio: A portfolio with a beginning value of $100 million, gaining an annual return of
10% per annum would grow to $259 million after 10 years, assuming no fees have been paid out. Conversely, a portfolio with a beginning value of $100 million, gaining an annual return of 10% per annum,
but paying a fee of 1% per annum, would only grow to $235 million after 10 years. The annualized returns over the 10 year time period are 10.00% (gross of fees) and 8.91% (net of fees). If the fee in the
above example was 0.25% per annum, the portfolio would grow to $253 million after 10 years and return 9.73% net of fees. The fees were calculated on a monthly basis, which shows the maximum effect of
compounding.

Total return assumes reinvestment of dividends and capital gains distributions and reflects the deduction of any sales charges or redemption fees. Performance may reflect the waiver of a portion of the
Fund's advisory or administrative fees for certain periods since the inception date. If fees had not been waived, performance would have been less favorable.

Any securities/portfolio holdings mentioned throughout the presentation are shown for illustrative purposes only and should not be interpreted as recommendations to buy or sell. A full list of firm
recommendations for the past year are available upon request.

The S&P 500 Index is an unmanaged index generally representative of the performance of large companies in the U.S. stock market. The performance of the index does not reflect the deduction of
expenses associated with a mutual fund, such as management fees. By contrast, the performance of the Fund reflects the deduction of the mutual fund expenses, including sales charges if applicable. An
individual cannot invest directly in an index.

J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. Those businesses include, but are not limited to, JPMorgan Chase Bank N.A., J.P.
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